Critical Analysis of Consumer Behavior (Term Paper Sample)

The Concept of Consumer Behavior
(Author’s Name)
(Department)
(Course)
(Professor’s Name)
(Date)
Table of ContentsCover page......................................................................................................................................1Table of Content2Abstract3The Concept of Consumer Behavior...4Introduction 4Importance of Analyzing Consumer Behavior 4Types of Consumer Behavior 6Characteristics of Consumer Behavior........................................................................................7Factors Affecting Consumer Behavior.........................................................................................7Consumer Behavior Patterns......................................................................................................10Conclusion....................................................................................................................................11References.....................................................................................................................................13
Abstract
Consumer behavior is a significant factor in influencing an organization's success. Companies need to focus on analyzing consumer behavior, attitude, and preferences to attract more clients and increase brand loyalty. Coca-Cola is a multinational company known for its strong reputation for meeting consumer needs by properly analyzing customer behavior (Peter & Olson, 2010, p. 155). The company applies fair prices on its products, giving customers purchasing power, thus driving sales. The cost-leadership strategy of Coca-Cola allows buyers to experience the taste of owning its brands across the social and economic status. For an organization to lead like Coca-Cola company, they should ensure a thorough analysis of consumer behavior to meet customer needs and fill existing gaps.
The Concept of Consumer Behavior
Introduction
Consumer behavior is the learning of customers and their approaches to select, consume, and dispose of services and products. Studying consumer behavior is essential because it reveals customer's thoughts and feeling on products and brands (Peter & Olson, 2010, p. 4). It is also crucial to analyze customer behavior to learn how different surroundings influence one's buying behavior. Analysis of consumer behavior also reveals their attitude when shopping and researching for products and services (Kostadinova, 2016, p. 224). When analyzing consumer behavior, one should consider the client's mental, behavioral, and emotional responses. Therefore, consumer behavior is connected to psychology, chemistry, economics, and biology.
When studying consumer behavior, companies have to understand optimal marketing strategies to apply to their brands to influence positive consumer behavior, affecting the purchase of products or services. For instance, suppose a given segment, the young generation is attracted to colorful products. When a company is designing a brand for its products, it is essential to incorporate such desires to attract the target consumer segment, thus driving sales (Peter & Olson, 2010). Failure to integrate the desires of customers on brands and services may lead to a loss in organizations. In other words, even after understanding the concept of consumer behavior towards new and existing products and services, organizations need to match appropriate marketing tactics to trending consumer behavior.
Importance of Analyzing Consumer Behavior
Marketers need to examine customer behavior to understand factors that influence consumers to purchase certain products and services over others. Many organizations are competing directly and indirectly. For example, Coca-Cola and PepsiCo compete directly while the two companies face indirect competition from organizations like Tropicana and Coffee sellers. Coca-Cola is recognized for leading in the manufacturing, production, and distribution of its products to more than 200 states worldwide (Peter & Olson, 2010). The leading beverage producer attracts its clients through its various flavors and engaging advertisements that ensure customer loyalty by maintaining its Coke flavor.
Understanding consumer behavior helps in meeting consumer needs. Currently, Coca-Cola faces indirect competition from companies like Tropicana for producing healthy drinks, which is on the rise in the United States. Coca-Cola company, therefore, makes more healthy drinks by creating bottled water and lowering the calories content in sodas. The company also targets developing nations that are less concerned with calorie content to ensure their success. Even though Tropicana is penetrating the beverage and soft drink market, it still faces a high threat from Coca-Cola since Coca-Cola maintains its customers' needs through analyzing customer behavior and needs. Therefore, marketers need to analyze trending factors influencing consumer behavior to meet customer needs.
Analyzing consumer behavior helps companies decide on optimal designs for their brands. Based on the client's age and social status, among other key elements, one should apply features expected by their clients in their brands that portray the company's service and products. A brand should be engaging to attract more buyers (Huete-Alcocer, 2017). Young buyers aged 10-15 years old require colorful brands and engaging advertisements that portray the benefit of the product or brand. For instance, while marketing nutritious food, an advert should contain features showing the product's benefits, such as a thin person turning muscular after consuming the product. Marketers should consider such factors to increase sales.
Types of Consumer Behavior
Since there are different types of factors influencing consumer behavior, making customers respond differently, the four kinds of customer behavior when exposed to products and services for the first time or when researching or shopping. The four types of customer behavior include complex buying, variety seeking, dissonance-reducing, and habitual consumer behaviors. Marketers need to understand these four types of consumer behavior to comprehend clients' attitudes during shopping and researching for products and services.
Complex buying behavior is portrayed when customers purchase expensive products or services that have less traffic in the market. When buying such products, clients prefer to do thorough market research to understand the benefits and challenges that a product or service entails (Huete-Alcocer, 2017). For instance, when purchasing a fridge, people may be confused about the type of refrigerator they need; single or double door, big, wide, or narrow. A famous brand like Samsung can also drive some people. Clients will investigate the advantages of having a single-door fridge over a double make before purchase.
Variety-seeking behavior is when customers buy various services or products to explore the difference between one product and another. The client does not portray a sense of dissatisfaction but the need to discover the feeling of using a different product over the other. In such situations, customers may want to explore a taste of consumable products, the scent of applicable items like lotions and body sprays, and other motivating factors.
Dissonance-reducing behavior is portrayed when buyers face challenges in differentiating brands. When buying a smartphone, clients may be confused between the various brands in the market. Some will purchase smartphones based on price, a sign of quality, while others will be influenced by a fee based on affordability. However, both buyers are still concerned with the quality and durability of the communication gadgets they are buying (Huete-Alcocer, 2017). Customers prefer purchasing durable products. Therefore, customers seek confirmation from friends, relatives, and workmates on their choice by picking a product brand over another.
Habitual purchasing is distinguished by a lack of consumer involvement in product or brand class. Some buyers visit the shop and request toothpaste and leave with whatever they are offered less concern about the brand. Such customers lack brand loyalty. They only buy products to meet their needs and not for other factors like brand image or loyalty.
Characteristics of Consumer Behavior
Customers are influenced to purchase some products and services by numerous factors such as market trends, brand, and age. The multiple influencing elements can be categorized into three groups: personal, social, and psychological (Ramya & Ali, 2017, p. 76). The individual factors include a person's opinions and interests that entail demographic influencers like age, gender, race, culture, and sex. Social factors include friends, family, social media, level of education, and income (Ramya & Ali, 2017, p. 78). Psychological aspects include one's response to a marketing message based on an individual's attitudes and beliefs. While analyzing consumer behavior, marketers must consider these three classes of influencers to ensure they attract the target clients, thus ensuring their success in the target markets.
Factors Affecting Consumer Behavior
When shopping for products and services, customers are motivated to purchase certain products or services by diverse factors that include marketing campaigns, group influence, economic conditions, personal preferences, and purchasing power. Marketers should realize that their marketing strategies drive higher sales in any given company. Marketing campaigns should contain the appropriate message and content to convince and attract buyers to switch brands...